In contrast, car sales have grown at a compound rate of just over 2 percent per year and reached 2.8 million in 2015/16.

Owning a personal vehicle rather than relying on public transport is an important status symbol for India's fast-expanding middle class but many buyers opt for motorcycles due to cheaper purchase and operating costs.

"The majority of the middle-class, middle-income population including college students prefer to travel by two-wheelers, as it is more economical," a market research report for the government said.

Motorcycles are also far more manoeuvrable in the country's crowded urban streets and highways.

Two-wheelers use far less fuel than cars but the sheer number of motorcycles being added to the country's roads each year is propelling rapid growth in fuel consumption.

India's fuel demand would be growing even faster if consumers were buying cars.

But consumption is nonetheless growing fast as millions more people use a motorcycle rather than walking or taking public transport, which is the relevant baseline for oil demand.

Vehicle ownership rates in India remain far below the level in advanced economies as well as other middle-income developing countries, according to the Ministry of Road Transport and Highways.

India's motorcycle ownership rates are fairly high, at 108 motorcycles per 1,000 population, and steadily increasing, which puts the country ahead of most peers, though far behind Malaysia with 362.

But overall vehicle penetration remains low, at 149 motor vehicles per 1,000 population, compared with 273 in Brazil, 277 in Mexico, 512 in Britain and 781 in the United States.

So there is enormous scope for fuel demand to increase over the next decade as more households obtain access to a motor vehicle - initially two-wheelers before some upgrade to four wheels.